What is Kilroy Realty Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Kilroy Realty's Probability of Financial Distress (%) is 0.05%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Kilroy Realty's Probability of Financial Distress (%)
For the REIT - Office subindustry, Kilroy Realty's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kilroy Realty's Probability of Financial Distress (%) Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Kilroy Realty's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Kilroy Realty's Probability of Financial Distress (%) falls into.
Kilroy Realty Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.67 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.05% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Kilroy Realty (Kilroy Realty) Business Description
Traded in Other Exchanges
Address
12200 West Olympic Boulevard, Suite 200, Los Angeles, CA, USA, 90064
Kilroy Realty is a premier owner and landlord of approximately 16 million square feet of office space across Los Angeles, San Diego, the San Francisco Bay Area, and greater Seattle. The company operates as a real estate investment trust.
Executives
| John Osmond |
officer: EVP, Head of Asset Management |
C/O KILROY REALTY CORPORATION, 12200 WEST OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| Michelle Ngo |
officer: SVP, CFO & Treasurer |
C/O KILROY REALTY CORPORATION, 12200 W. OLYMPIC BOULEVARD, SUITE 200, LOS ANGELES CA 90064 |
| Eliott Trencher |
officer: SVP, Chief Investment Officer |
C/O KILROY REALTY CORPORATION, 12200 W. OLYMPIC BOULEVARD, SUITE 200, LOS ANGELES CA 90064 |
| Louisa Ritter |
director |
C/O KILROY REALTY CORPORATION, 12200 W. OLYMPIC BOULEVARD, SUITE 200, LOS ANGELES CA 90064 |
| Jonathan Praw |
officer: SVP, Chief Investment Officer |
C/O KILROY REALTYCORPORATION, 12200 W. OLYNPIC BOULEVARD, SUITE 200, LOS ANGELES CA 90064 |
| Merryl Elizabeth Werber |
officer: SVP, CAO & Controller |
12200 W OLYMPIC BLVD STE 200, LOS ANGELES CA 90064 |
| Stephen A Rosetta |
officer: EVP, Chief Investment Officer |
C/O KILROY REALTY CORPORATION, 12200 W. OLYMPIC BOULEVARD, SUITE 200, LOS ANGELES CA 90064 |
| Jolie A. Hunt |
director |
C/O KLIROY REALTY CORPORATION, 12200 W. OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| Michael L. Sanford |
officer: EVP, Northern California |
12200 W. OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| Peter B. Stoneberg |
director |
12200 W. OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| Gary R. Stevenson |
director |
12200 W. OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| David Joshua Simon |
officer: EVP |
12200 W. OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| A. Robert Paratte |
officer: See Remarks |
12200 W. OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| Justin William Smart |
officer: See Remarks |
12200 W. OLYMPIC BLVD., SUITE 200, LOS ANGELES CA 90064 |
| Kilroy John B Sr |
director |
12200 W OLYMPIC BLVD, SUITE 200, LOS ANGELES CA 90064 |
Kilroy Realty (Kilroy Realty) Headlines
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